Do I really need insurance? 

Can you afford to pay an attorney to defend you in a lawsuit? Do you have the money in the bank to rebuild your barn, home or replace a horse that is valuable to you?  If you answered no to either of these questions, then YES, you really need insurance.

Insurance was originally intended to help you recover from a financial loss and pay your litigation costs. Sounds simple enough, but today, we live in a society where people are quick to place blame.  Fortunately, there are programs available to insure you and your equine activities appropriately.

Why Should I insure my horse?

You should insure your horses to protect yourself against the possibility of losing them to various causes, which could leave you in financial distress.  Too often, unexpected incidents or medical emergencies take place that, without insurance, you may be unable to accommodate, leaving your horse to suffer or die unnecessarily.  

If you've just purchased a horse, it may be a good idea to carry the optional Major Medical & Surgical in addition to the standard Mortality, just because you don't know what medical problems the horse may have. After a year, you might decide to carry just the standard Mortality. 

Generally, the cost of insurance is minimal when compared to the overall costs of maintaining your horse, paying for colic surgery, or paying a lawsuit.  In fact, many times the cost of entering your horse in a show is higher than the cost of its insurance.

How much will it cost to insure my horse?

The only way to get an accurate answer to this question is to fill out the appropriate form and request a quote.  Premiums vary depending on the breed and age of the horse, its value, its use, etc.   Mortality coverage is similar to 'Life Insurance' and is for the value of the horse should it die. Extended coverages are available for surgery & medical coverage, as well as loss of use, infertility, or named perils.

For a free quote, please email us at info@frysequineinsurance.com

At what age can my horse be insured?

A foal can be insured at 24 hours after birth with a satisfactory vet report confirming it is in good health completed by a licensed veterinarian.  Bloodwork including IgG test results are required on newborn foals.

What is the oldest age at which I can insure my horse?

Companies begin putting age restrictions on horses after they reach 16 years. At 15, you can obtain full mortality, medical, & surgical, but at 16, you can only obtain mortality & surgical, without the medical.

If my horse has been treated for colic, can it be insured?

A horse can typically still be fully insured after having been medically treated for an episode of colic, assuming the episode occurred over 12 months ago and has not reoccurred.  Otherwise, the insurance company may accept coverage with an exclusion for colic and review the circumstances when your policy is up for renewal.

If my horse has required colic surgery, can it be insured?

All medical history including colic surgery is considered at the time you apply for insurance.  Usually full mortality coverage will be offered if your horse has fully recovered and had no further colic problems for a period of 12 months following surgery.   Depending on the situation, the policy may require an exclusion for death resulting from colic or intestinal disorders.

Is my horse covered during transport?

Yes, he's covered while being transported under mortality insurance.

I'm concerned about being able to pay the vet bills if my horse becomes ill or has an injury. What types of coverages are available?

If your horse is between the age of 31 days and 14 years, you should seriously consider adding Major Medical/Surgical coverage to your mortality policy. This coverage will reimburse you for covered veterinary costs (both medical and surgical) in the event your horse has an injury, illness, accident or disease.

Can I get Major Medical/Surgical, Surgical Only, or Loss of Use coverages by themselves?

No. These coverages are only available as endorsements added on to a Full Mortality policy.

How does Loss of Use coverage work?

Loss of Use helps to reimburse you for a percentage of your horse's insured value in the event he is permanently unable to perform his insured use.

Loss of Use is only available for performance horses, not breeding or pleasure horses.  Contact us for additional information.

Are there any uses/disciplines which do not qualify for coverage?
Race horses, horses in race training, or horses intended to race do not qualify for Major Medical or Surgical coverage. Your horse’s use and/or intended uses must be stated on the mortality application.

What do I need to do to get immediate insurance coverage for my horse?

An application and a satisfactory report completed by your veterinarian are required for horses valued at greater than $50,000 or under 31 days of age.

A health statement completed and signed by you confirming the good health and health history of your horses is all that is required for horses valued at less than $50,000 and at least 31 days old.

If your horse has had prior medical problems, a vet exam may be required to provide full details of the prior incidents and confirmation of full recovery.

If you request additional coverages such as loss of use or fertility coverage, you will need the vet certificate and additional forms. 

Download the appropriate forms and email, fax, or mail them to us today.  If all information is order, coverage can be bound immediately.

I purchased my horse a couple of years ago and got a great deal.  Now that I have put some training into him how do I determine my horse’s value today?

Setting your horse's value - It's not always black and white.  Before you insure your horse you should be prepared to do a valuation with your insurance agent. The agent will then present this valuation to a company underwriter for approval. Completing the valuation before taking out the insurance policy--and not after the fact--will prevent many problems with a claim.

For insurance purposes the purchase price initially becomes the horse's value. However, that can change. Once you show or race your horse, other factors will affect the value. These include: show record, race record, earnings, points, or how successful a brother or sister out of the same mare has been. In this way, when you have a show horse or race horse, the valuation of your horse can be subjective.

Valuing a foal will be handled a little differently. In most cases two times the stud fee is the rule of thumb for valuation. However, there are exceptions to every rule. What has the mare produced? What have the mare's other offspring accomplished? If applicable, what is the average selling price of other offspring out of the mare? Have there been any other foals that are full brothers and sisters, and what have they done?

These are a few ways to look at setting a value on your horse. The goal is to provide your insurance agent with as much pertinent information as possible so he or she has the opportunity to present your horse to the insurance company underwriter in the best light possible.

In the final analysis, ask yourself this question: Could I realistically sell this horse at this value today?

EQUINE BUSINESS ISSUES

I own a boarding stable and some of my boarders trade their labor for part of their stall rent by cleaning stalls.  I have been told that this is not a good practice because of the insurance.  Is that correct?

Typically, a liability policy covers you for bodily injury and property damage to others. It would exclude coverage for relatives and employees. In your situation where you are trading labor for stall rent, the adjuster could make the case that the boarder is an employee, in which case your liability policy would not cover you if that person were injured. You should cover your employees with workers compensation insurance.

Our local riding club puts on several shows each year.  Are the participants covered under our club’s liability policy?  Also, are the officers and directors covered under the club policy? 

The answer depends upon what insurance carrier you are using. You need to speak to your agent and get your insurance company's interpretation. I have investigated three major carriers on the subject of participants. I am going to generalize my answer to give you the broad differences in insurance coverage.

COMPANY NUMBER 1 excludes any person at a show that is signed up as a participant in the show. It does not matter if they are on the sidelines watching the show or practicing for the show or actually participating in the event. They are said to be participants because they have signed up to participate.

COMPANY NUMBER 2 states that a participant is only a participant when that person is practicing for the event or competing in the event.

COMPANY NUMBER 3 states that participants are excluded from liability only on those activities specified, i.e. hunts, racing, rodeo-type, vaulting, polo and practices. Participants in team penning or barrel racing will not be excluded.

As for officers and directors – they would be covered as part of the club's policy. However, remember that liability covers bodily injury and property damage to others. For example, if a horse kicks a spectator, the club may be sued. Your policy should cover that litigation. It would cover officers, directors, volunteers and club members as being part of the club. However, you must not confuse this with OFFICERS AND DIRECTORS COVERAGE. This is a specific coverage for officers and directors and would not be covered under your club liability coverage. An example of officer and director coverage would be if a director made a decision while executing his duties as a director of the club that caused financial loss or distress (such as discrimination).  It would not be covered under the club liability coverage because it does not fall under the definition of property damage and bodily injury to others.

If I am providing riding instructions on my farm, what additional insurance coverage should I consider?

You should purchase a commercial equine liability policy.  If you only have a homeowner’s policy, it usually will not provide liability protection for your horse business.  Should one of your students sustain an injury, you could be held legally liable.

I operate a boarding facility, what liability insurance should I consider?

In addition to the Commercial Equine Liability insurance, you should also consider including the Care, Custody or Control (CCC) Liability insurance.  

CCC insurance will cover you if someone else’s horse is injured or dies while in your care.  It covers the cost of defense for legal action as well as the loss or reduction in the value of their horse.  The Care, Custody or Control Liability policy will pay up to the policy limit for the death or injury to non-owned horses in your care.  Your Commercial Equine Liability Policy would pay only for the damages to property as well as injuries sustained by bystanders.

Do I need CCC coverage if all the horses at my barn are insured by their owners?

You should still purchase CCC coverage.  A CCC policy covers you if one of those horses gets injured or dies while under your care.  If you are deemed to have been negligent while caring for the horse, you can still be sued. If this happens, the CCC policy will pay for your defense and pay claims up to the coverage limits.

Why should I consider replacing my Homeowner's policy with a Farm/Ranch Owner's policy?

A farm/ranch owner's policy is specifically designed to include the insurance on not only your residence, but all other farm buildings or tenant's dwelling on your property.   Your barn will be insured at its replacement cost.  Each building will be insured for its actual use.  This policy can also provide insurance on your farm equipment, such as expensive tractors, as well as your household personal property.  Both your personal and equine liability is included providing liability protection for all of your horse related activities.

WORKING WITH FRY’S EQUINE INSURANCE AGENCY

What kinds of questions should I be expected to answer when I am applying for an insurance policy?

When you apply for an insurance policy, you will be asked a number of questions which will be used to determine how likely you are to make a claim.  This is similar to applying for automobile insurance.

When an insurance company is deciding whether or not to offer automobile insurance to a potential customer, it will want to know about the person's previous driving record, whether they have any recent accidents or tickets, and what type of car is to be insured.

When insuring your farm, you need to know values of your home, barns and anyother outbuildings, and the value of your farm personal property. You will also need to determine the amount of liability coverage you want to carry and the property deductible.

Why should I use an agent to purchase insurance?

If you have any question you would like to see answered, please e-mail us.